Oct.9, 2009 -- For those of you who have listened for so long and for those who may be new. Do whatever you can to get out of dollar denominated assets and do it quickly. It is looking to me like the run on the dollar has begun in earnest. This is the one I have consistently predicted as far back as 2003-2004. I'm not going to write a long argument. Those who have been reading this blog don't need it. All the rest of you can just go back and read the terrific postings made here by Jenna Orkin over the last month. Those of you who have followed me and FTW for years will remember our only four previous warnings and you know how right those economic alerts proved to be. That's why I left a record of between two and three million words.
Do it now. We're all reading the same map.
MCR
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MCR, done. Thanks to your guidance, and to that of some of your readers and others, I cashed in an RRSP last winter and went silver bullion. The roof over my head with two acres was already paid for. As the bumper sticker says: Don't laugh, it's paid for.
My own situation re hard assets comes in roughly at this: property 80%; bullion 10%; other (truck, tools, machinery, etc.) 5%; cash 5%. Mileage for others may differ.
Speaking of dollars, as you can see there aren't a lot of them and even less that are disposable. Crafters are some of the first to get whacked in a downturn; cash flow is at a null. I wish you all the best and that's all I can do right now.
Disposable income (and time, time, time!) has been going towards this. I hope it is some kind of ethical/political return for you (and others) and the work that has been done. Peak Oil goes mainstream politics. To the best of my knowledge, this is a first on the NAmerican continent. The AGM is set for October 24-25. Should it pan out, there is a small annual retainer that's part of the deal. We can take things from there.
For anyone who might be new, it's a reasonably good time to do the bi-annual flog for Post-Peak Oil and NAmerican Regional Secession. The black words are, of course, important. Thw white words of nuance between the lines are just as, if not more important. I am reminded of The White Album. We are big on connecting dots around here. This comment is a big, fat dot connecting to the link in the previous comment.
OK I'm a grad student and I have very little money to do anything with anyway. But given that gold is already so high and because I heard someone say the other day they think silver will appreciate even more sharply than gold will would silver be a good option? Anyone know if this is a good idea?
"Do whatever you can to get out of dollar denominated assets and do it quickly. It is looking to me like the run on the dollar has begun in earnest."
As a former subscriber to FTW and long-time admirer of MCR I have to say, for the average Joe, that is a very confusing piece of advice. If the value of the Dollar falls by, say 50%, against a basket of alternate currencies then, all other things being equal, the dollar value of say the DJIA (a dollar denominated asset) will double. OK all other things will not remain 'equal' for long but the principle is sound enough. For anyone having to to pay their bills in Dollars, pretty much everything will simply get a lot more expensive so, anyone already holding 'Dollar denominated assets will likely find themselves considerably richer in Dollar terms too (domestic property and certain other bubble type assets excluded of course).
IOW, it really is a bit of a conundrum with no simple solution by way of personal protection in sight.
Sense I have done 3 things to adjust to peak oil.
1. Moved to Tualatin, Oregon from Southern California.
2. Got a reverse Mortgage on my home to reduce expences.
3. Got a local job less than a mile from home in the organic food industry. (Was in Aerospace).
Also I have a small garden. None of this would have happened with out the data on peak oil. I am as ready as I can be to weather the coming storm.
Thanks Mike
Bob Pike
By getting out of dollar denominated assets do you mean hold more dollar in cash? Because you use dollar cash to purchase dollar denominated assets, when one goes down then by definintion the other one goes up. Case in point - if US government debt as dollar denominated asset goes down it means you can buy more debt with the cash you hold tomorrow, so by holding cash today you can hope to buy more assets tomorrow, and since US government debt will only go down in price if the interest rate on new US government debt skyrocket, it is equivalent of saying US interest rate is about to skyrocket, so those cash deposit paying 1% today annually will be paying 100% tomorrow. Is that what you are predicting?
If a significant number of OPEC or non-OPEC exporters go to euros, the US economy will resemble a clothes drier full of bricks. It can't be overstated how this will affect the balance of payments and the domestic cost of oil. The capacity to do useful work on the North American continent will take an enormous hit. The only thing worse would be a military answer to the inevitable decline of the American Empire.
In follow-up to the dire warning in the posting on the main page of this thread, this article discusses what we're faced with financially and economically right now, how the global banking and economic forces play into it, and how it appears that the elite are now spreading the word that economic recovery has begun, when they know it's a total lie.
Entering the Greatest Depression in History
metem
yes that's straight thinking on silver. bigger bang for buck
Check this site for continuing DOOM Economic News
The Coming Depression
Exchange dollars for bullion, bonds for bullion, stocks for bullion. You want to own the real thing during any crisis....not some paper promise. Great post and comments.
Mark
editor@dgcmagazine.com
I remember one of the 4 previous economic warnings was right before 911, when were the other three?
No need to overthink this. If the value of the dollar on the global market goes down, then life just got more expensive. If you have CDs, savings accounts, etc. - promises to pay back in dollars - you are going to get back less in real terms than you put in. If you put dollars into gold now you will get back closer to the value you put in, maybe more, maybe a bit less depending on timing.
Counting on the inflation effect to send stock values higher sounds like a major gamble because the current market nowhere near reflects the impact of the true lack of confidence in the system that is unfolding and is still based on fictional profit calculations.
I've answered my question myself:
http://www.fromthewilderness.com/free/ww3/061406_abyss_awaits.shtml
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